DTI Ratios
• For manual underwriting: see advantage matrix
• Loans with 620+ fico use AUS recommendation unless downgraded to a refer by the underwriter

Special Requirements on 3-4 Unit Properties
• Purchase and refinance transactions must have 3 months PITI reserves which may not be derived from gift or proceeds from cash out refinance.
• The property must be self-sufficient (including the owner occupant unit) – 85% of gross rents (based on HOC) less the proposed PITI.
• Use of rental income to qualify only allowed if FICO 620+ or if the borrower has maintained a rental property in the recent past.

REPAIR AMOUNTS: Minimum amount of repairs $5,000. The maximum amounts of repairs are only subject to
FHA Loan limits.

CONSULTANTS: All full 203k loans require a 203k work write-up as per FHA guidelines prepared by a HUD Approved consultant. Must be ordered through MIM approved consultant list.

APPRAISAL: All 203k appraisals must be ordered through a MIM approved AMC. Appraisals are subject to the completion of all work as detailed in the final 203k work write-up. All required repairs must be included
within the 203k work write-up as per FHA guidelines.
Note: The 203k work write-up shall be annexed to the appraisal.

CONTRACTORS: Contractors must meet all applicable requirements within the State and Municipality covering the subject transaction. A full list of contractor requirements, documentation and forms to be fully executed are available on the MIM support website.

All work to be performed must be allowed and approved where applicable within the local municipality. All applicable plan approvals and permits must be obtained prior to funds being released.

STREAMLINE 203(k)

DESCRIPTION: Geared towards simpler repairs and repairs that are more minor and cosmetic in nature. New construction or newly constructed repairs and additions are not allowed. (i.e. Upgrading or direct replacements to flooring, tiling, walls, ceilings, doors, direct replacement to roofing, siding, gutters, leaders, downspouts, painting, modernization of kitchens and bathrooms…appliances, improvements of property functions and modernization, upgrade of existing electric/heating/plumbing).
New construction and/or newly constructed repairs and additions
are not allowed.

REPAIR AMOUNTS: There is no minimum repair amount required. The maximum rehabilitation escrow may not exceed
$35,000.

PERMITS: Work requiring permits allowed however any work requiring plan approvals within the local municipalities are not allowed.

CONSULTANTS: 203k consultants are not allowed as part of the streamline program. Borrowers may however obtain the services of a HUD consultant to perform a feasibility report to help plan with the work to be performed on the subject property. Any costs for such services may not be part of the streamline transaction.

APPRAISALS: All 203k appraisals must be ordered through a MIM approved AMC. Appraisals are subject to the completion of all work as detailed in the final contractor’s estimate. All required repairs for health, safety and minimal property standards must be included within the Contractor’s estimate. The final contractors estimate shall be annexed to the appraisal.

CONTRACTORS: Contractors must meet all applicable requirements within the State and Municipality covering the subject transaction. A full list of contractor requirements, documentation and forms to be fully executed are available on the MIM support website.NOTE: All required and desired repairs must be detailed in the final contactor’s estimate. All repair items must be detailed per line item, and must reflect the breakdown of the costs for material and labor.

All work to be performed must be allowed and approved where applicable within the local municipality. All applicable plan approvals and permits must be obtained prior to funds being released.

NOTE: SUBJECT PROPERTIES WHERE UTILITIES ARE NOT OPERATING AT TIME OF INSPECTION WILL REQUIRE A FULL 203K
PROGRAM.

Disclaimer: Rates, Terms, and Conditions dependent on Borrower's Credit/Income/Debt stats and are subject to change without notice. No promises or guarantees are expressed or implied on this entire website or binds Fairway Asset Corporation to any agreement.